Sri Lanka’s External Sector records a ‘mix performance’.
The growth of Export Earnings outpaced the growth of Import Expenditure in May 2018, thereby containing the Trade Gap to a certain extent. Supporting the Current Account, earnings from Tourism and Workers’ Remittances continued to increase during the year. Furthermore, the recently introduced measures to address excessive importation of gold and motor vehicles, are expected to reduce the pressure on the Balance of Payments.
Meanwhile, although some pressure on the Exchange Rate was observed since late April – which mainly reflected the impact of the US Dollar’s ‘broad-based strengthening’ in the global markets; the Depreciation Pressure shows to have eased to a certain extent since late July.
Reflecting this development, the Rupee has depreciated against the US Dollar by 4.2 percent so far during the year.